Market data as of August 2023. For the latest numbers in your area, see my live Altos Research market report.
For my friends in real estate and my friends that are buyers and sellers… some real estate market observations thanks to my friends over at Altos:
We all know that a change in mortgage rates reduces the real estate sales rate and vice versa. With the highest mortgage rates in 20 years, a few observations:
35% of sellers are taking a price decline from the initial sales price, which is ticking up slightly. Austin, Texas, has the highest level of price cuts, with nearly 50% of listed homes with a price cut. The lowest? Irvine, California, at 15% of homes listed.
There are 10% fewer homes on the market now than this time last year. The inventory of homes for sale tends to peak at the end of August, yet not this year with higher rates. Inventory might continue to rise past normal seasonality.
Late August Observations…
- Unsold homes ticked up this week.
- Inventory gain week over week is the highest in a few months, and good news for your buyers that can afford to buy
- The sales rate has slowed; part seasonality and part rates.
- On a national basis, 365K homes are in contact right now, up a fraction vs. last week.
- However, new pending sales this week were 63K vs. 70K last year.
As we enter into seasonality, the trend to look for: how quickly will new pending sales shrink? Will it be more significant than normal seasonality? That is the stat I’ll be watching.
One bright spot: 10,000 Americans turn 65 daily and are typically cash buyers when they downsize or move closer to family.
Look at the stats in your area: click here.
Want help applying this in your brokerage? Book a 30-minute conversation with Mark at calendly.com/mjsession.
